Does The $15,000 Tax Credit for home buyers have a chance?

Real Estate Agent with Windermere

I have been doing some reading/researching on the issue of a proposed extension/increase of the current $8000 1st time home buyer tax credit bill issued by Sen. Isakson (R) Georgia.

After being first introduced earlier this summer, the bill seemed to to fade away as other bills took over importance. The bill also had co-sponsors from both political parties including Chris Dodd (D).

The bill sounds like it has been reintroduced with even more support from both sides of the isle and has several changes included that will help even more people their current home buying situation.

These changes include:

1. Removal of the income cap that had been limited to $75k ($150k jointly).

2. Opens up the program to include ALL buyers, not just first time home buyers.

3. Most importantly, changes the tax credit from $8000 to $15000!

4. Would be able to spread tax credit over a two year period.

While I did like the current tax credit program, it did not do as much as I had hoped it would. There were a couple of reasons for that. One reason was that our market the last four or five years was so active that most people had already got into the market for the first time. With the rule that you had to have not owned a home for the last three years, it didn't affect as many people as it could have in other markets. The other reason is that while the tax credit was great, you still had to have lenders actually lend you the money on homes that first time home buyers could afford. In our market, that included a large percentage of Condos. Lenders have been to reluctant to loan money on condos without large down payments, so that hurt a lot of people also.

I am hopefull that this new bill will be passed into law and open up opportunities for more people to get the market moving again as it is a giant part of our economic recovery!


Comments (3)

Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy there Patrick

I heard last week in an interview, Mr. Obama said he will not sign an extension or a new bill, for any home buying Tax Credit.

Baker Home Inspection and Consulting AR Signature

Sep 21, 2009 03:02 PM
Patrick Johnson
Windermere - Bellingham, WA

GREAAAAAT! Maybe it is just a way of getting people who are waiting to see if there is an extension to get off the fence.


Thanks for the update Dale!

Patrick Johnson, ABR E-pro

Windermere RE, Bellingham Wa.

Sep 24, 2009 07:41 AM
Michael Bergin
Coldwell Banker Residential Brokerage - ABR - SRES - Alexandria, VA
Northern Virginia Real Estate

It will be interesting to see what really happens.  I've only had one client take advantage of the credit and our office hasn't exactly been inundated either.  Not sure what that says overall - more than my Econ, 101 allows for!

Sep 24, 2009 11:46 AM